Is British American Tobacco (BTI) a Wise Investment Choice?

Distillate Capital Partners LLC, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Distillate’s U.S. FSV outperformed S&P 500 in the first quarter of 2022 with a return of -3.60% net of fees versus -4.60% for the benchmark. Since its inception in 2017, annualized performance is now 1.93% ahead of the S&P 500 after fees. The U.S. FSV strategy lagged against the Russell 1000 Value ETF benchmark in the first quarter of 2022 but remains 7.41% ahead annualized since inception. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Distillate Capital mentioned British American Tobacco p.l.c. (NYSE:BTI) and explained its insights for the company. Founded in 1902, British American Tobacco p.l.c. (NYSE:BTI) is a London, England-based tobacco holding company with a $96.5 billion market capitalization. British American Tobacco p.l.c. (NYSE:BTI) delivered a 14.11% return since the beginning of the year, while its 12-month returns are up by 9.57%. The stock closed at $42.69 per share on June 22, 2022.

Here is what Distillate Capital has to say about British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”

Photo by Louis Hansel on Unsplash

Our calculations show that British American Tobacco p.l.c. (NYSE:BTI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. British American Tobacco p.l.c. (NYSE:BTI) was in 19 hedge fund portfolios at the end of the first quarter of 2022, compared to 18 funds in the previous quarter. British American Tobacco p.l.c. (NYSE:BTI) delivered a 1.28% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on British American Tobacco p.l.c. (NYSE:BTI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.